Life Insurance and deceased parent

[ShylaMcClaus]

I know absolutely nothing about them (can't afford one myself) The surviving parent has handed me a folder in which there seem to be several different policy numbers, statements which are incomprehensible and documents the like of which I have never seen before.

They are ornate, like birth certificates, with tables on the back - projections? But pre-decimalisation. I have worked out that the main policy was for one thousand pounds but obviously, what the company has done with it will also affect the eventual outcome. The projections only go up to thirty five years but it has been paid for forty five.

I have sent the certificate to the company, and they have said that they will collate all the information but I feel that I should have an understanding of what they are doing.

Can a clever and kind person please give me a rough idea of what should be paid or is this impossible to estimate? If so, are there checks, auditing of long-standing financial arrangements like this in place within the industry, and will there be a breakdown of figures? I feel completely helpless yet have been trusted with the financial future of my parent and don't want to get it wrong.

Thanks in advance.

There should be a set sum assured that is paid on death maybe try calling them with the policy holder and see if they can tell you

Thanks Laststop. Yes, the one thousand (old) pounds was the sum assured. They didn't have any idea when I rang to ask what to send.

My parent wants to downsize as they have already been living on their own for a year but it will be impossible unless there is enough to cover the equity release (which might be worth challenging as it's an old one with Northern Rock)

Mopst of these will be straight "term assurance" which means if you die the company just pays out that state sum £1000.

Some people also took out endowment polices which cost a lot more and the sum was invested and might increase eg if share prices increased. This is not straight term assurance and it could be more than the basic sum £1000. In fact in the good old days these policies often were taken out when a house was bought and frequently paid the mortgage off plus gave you an additional lump sum when not linked to death but these days they often don't even cover the mortgage.

I think it is the an endowment life policy and hopefully it will be enough to pay off all the mortgage outstanding plus perhaps a lump sum too - the insurance company will be able to tell you the sum that will be obtained.
If it is says sum assured however that suggest just a straight £1k back, not an endowment policy yet the projections suggests it was an endowment policy so could be more than the £1000 now ( or possibly less - there is a mis-selling scandal for some companies who sold these policies wrongly to people although plenty who took them out knew there was a risk they would not cover their mortgage at the end of the term or death and chose to take that risk). Keep copies of anything you send to the lender.

Which company is it with ?

It is with Liverpool Victoria. My parents did have an endowment / interest only mortgage but this was paid off before they retired, ten or more years ago. This is why they were able to do the equity release.

The company has already sent back the copy of the death cert and will.

It is so confusing. Thank you for your help

If they had an endowment mortgage then probably this one is just life insurance. Most older people however don't have life insurance as you tend to take out policies to expire once you reach about 60 to save on premium payments.

That's interesting. I might give them a call and see if the information has been processed, and what the time-scale might be. We have nowhere to lay flowers on Christmas Day at the moment as the memorials are quite expensive